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Accounting Policies of Jindal Hotels Ltd. Company

Mar 31, 2015

A. Basis of preparation of financial statement :

The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles(GAAP) and provisions of The Companies Act, 2013 read with the Companies ( Accounts) Rules, 2014 as adopted consistently by the company, except where a newly issued Accounting Standards initially adopted or a revision in to an existing accounting standard requires a change in the accounting policy hitherto in use.

B. Basis of Accounting:

a. The company follows the mercantile system of accounting.

b. All income and expenditure items having material bearing on financial statement are recognized on accrual basis, except Dividend income and insurance claim, if any.

C. Use of Estimates

The preparation of financial statements in conformity with Indian GAAP requires judgments, estimates and assumptions to be made that affect the reported amount of assets and liabilities, disclosure of contingent liabilities on the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Difference between the actual results and estimates are recognised in the period in which the results are known / materialised.

D. Fixed Assets:

a. All fixed assets are valued at cost of acquisition/ construction. The cost of fixed assets comprises of its purchase price and attributable costs including finance cost, of bringing the assets to its working condition for its intended use.

b. Capital Work in Progress is stated at the amount expended up to the date of Balance Sheet.

c. The expenditure incurred during construction period incidental to the expansion / new project including attributable finance cost, incurred on the project under implementation are treated as Capital Expenditure pending allocation ( to Fixed Assets. These expenses are apportioned to Fixed Assets on commencement of Commercial Activity.

E. Depreciation and Amortisation:

a. Depreciation has been provided on "Straight Line Method" over Use full life of respective Fixed Assets as provided in Part C of Schedule II of the Companies Act,2013.

b. Depreciation on Fixed Assets Purchased / Sold during the period is proportionately charged.

c. Premium paid on Lease hold land is amortized over a period of Lease.

F. Investments:

Investments in shares and securities are long term investments and are stated at cost. Gains / Losses on disposal of such investments are recognized as income / expenditure. When there is a decline in the value of any investment which is not considered to be temporary, then same is provided for by reducing the value of investment and charging the same to the statement of Profit & Loss.

G. Inventories:

a. Company follows the practice of charging to revenue, the cost of various inventories, on actual consumption basis.

b. Inventories are valued at lower of cost or net realizable value. Cost is arrived at on First In First Out basis.

H. Cash & Cash Equivalent :

Cash and Cash equivalent for purpose of cash flow statement comprise cash at bank and in hand and short term investment with an original maturity of 3 months or less.

I. Provision for Taxation

The amount of Income Tax is provided in accordance with the provisions of Income Tax Act, 1961.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences being differences between taxable income and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is a virtual certainty that sufficient taxable profits will be available against which such deferred tax assets can be realized.

J. Benefits to Employees:

The Company's contributions to the Provident Fund are charged to the Profit and Loss Account.

The Gratuity payable at the time of retirement are charged to the Profit and Loss Account on basis of independent external actuarial valuation determined and basis of Projected Unit Credit method carried out annually. Actuarial gains and losses are immediately recognized in the Profit and Loss Account.

The employees of the Company are entitled to leave/leave encashment as per the Leave Policy of the Company.

The provision for Leave Encashment is made on the basis of independent external actuarial valuation carried out at the end of the year/ period to which it pertains.

K. Revenue from Operation:

Revenue from Operation comprise of sale of Guest Rooms, Food and Beverages, Wine Sales but exclusive of Luxury Tax, VAT, Service Tax and other Taxes.

Other Operating Income includes Income from Hall Hire, Equipment Hire, Miscellaneous Banquet Services, Telecommunication, Laundry Services, Sale of Scraps, Travel Desk, Educational Division, Tips from guest, flower decoration and other miscellaneous services.

L. Other Income:

Other Income comprises of gain or loss in Foreign exchange earnings, Interest Received, Dividend Received and Other Miscellaneous Income.

M. Events after the date of Balance Sheet:

Wherever material, events occurring after the date of Balance Sheet are considered up to the date of adoption of the accounts.

N. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources to settle the obligation. Provision is not discounted to its present value and is determined based on the best estimate required to settle an obligation at the year end. These are reviewed every year end adjusted to reflect the best current estimate. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Statements.

O. Foreign Currencies:

Transactions in Foreign Currencies are generally recorded by applying to the Foreign Currency amount, the exchange rate existing at the time of transaction.

At year / period end monetary items denominated in foreign currency remaining unsettled are converted in to Indian Rupee equivalents at the year / period end exchange rates.

Gains or Losses on settlement, in a subsequent period of the transactions entered into in an earlier period, are credited or charged to the statement of Profit & Loss.

P. Claims:

Claims against the company not acknowledged as debts are disclosed after a careful evolution of the facts and legal aspects of the matter involved.

Q. Prior Period & Extra Ordinary Items:

Prior Period adjustment, extra ordinary items and changes in the accounting policies having material impact on the financial affairs of the Company are disclosed.

R. Assets Impairment:

An assets is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which the assets are identified as impaired. The impairment loss recognized in the prior periods is reversed if there has been a change in the estimate of recoverable amount.

S. The Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial periods of time to get ready for intended use. All other borrowing costs are charged to the revenue.


Mar 31, 2014

A. Basis of preparation of financial statement :

a. The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of The Companies Act, 1956 as adopted consistently by the company and ongoing concern basis.

b. Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles followed by the company.

B. Basis of Accounting:

a. The company follows the mercantile system of accounting.

b. All income and expenditure items having material bearing on financial statement are recognized on accrual basis, except Dividend and insurance claim, if any.

C. Fixed Assets:

a. All fixed assets are valued at cost of acquisition/ construction. The cost of fixed assets comprises of its purchase price and attributable costs including finance cost, of bringing the assets to its working condition for its intended use.

b. The expenses incurred during construction period, incidental to the Expansion / New Project are allocated to respective Fixed Assets in the year of commencement of the commercial operation.

c. Premium paid on Lease hold land is amortized over a period of Lease.

D. Depreciation:

a. Depreciation has been provided on "Straight Line Method" in accordance with the provisions of the Section 205(2) (b) of The Companies Act, 1956.

b . Depreciation on fixed assets acquired and put to use up to 15.12.93 has been provided at the rates prevailing at the time of their acquisition and on the assets acquired after that date at the rates as per Schedule XIV of the Companies Act, 1956

c . Depreciation on fixed assets added during the financial year has been computed on pro-rata basis with reference to period of use of such assets.

d. Assets whose actual cost does not exceed Rs.5,000/- have been classified under respective groupings as per their nature.

E. Investments: Investments in shares and securities are long term investments and are stated at cost. Gains / Losses on disposal of such investments are recognized as income / expenditure. When there is a decline in the value of any investment which is not considered to be temporary, then same is provided for by reducing the value of investment and charging the same to the statement of Profit & Loss.

F. Inventories:

a. Company follows the practice of charging to revenue, the cost of operating inventories of crockery, glassware, cutlery & curtains in the year of purchases, except under expansion project.

b. Inventories of food materials and beverages, stores and supplies, coal and fuel, wine are valued at lower of cost or net realizable value. Cost is arrived at on First In First Out basis.

G. Cash & Cash Equivalent :

Cash and Cash equivalent for purpose of cash flow statement comprise cash at bank and in hand and short term investment with an original maturity of 3 months or less.

H. Provision for Taxation The amount of Income Tax is provided in accordance with the provisions of Income Tax Act, 1961. Deferred tax is recognized, subject to the consideration of prudence, on timing differences being differences between taxable income and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is a virtual certainty that sufficient taxable profits will be available against which such deferred tax assets can be realized.

I. Benefits to Workmen: The Company''s contributions to the Provident Fund are charged to the Profit and Loss Account.

The Gratuity payable at the time of retirement are charged to the Profit and Loss Account on basis of independent external actuarial valuation determined and basis of Projected Unit Credit method carried out annually. Actuarial gains and losses are immediately recognized in the Profit and Loss Account.

The employees of the Company are entitled to leave/leave encashment as per the Leave Policy of the Company. The provision for Leave Encashment is made on the basis of independent external actuarial valuation carried out at the end of the year/ period to which it pertains.

J. Revenue from Operation:

Revenue from Operation comprise of sale of Guest Rooms, Food and Beverages, Wine Sales, Income from Business Centre but exclusive of Luxury Tax, VAT, Service Tax and other Taxes. Other Operating Income includes Income from Hall Hire, Miscellaneous Banquet Services, Telecommunication, Laundry Services, Sale of Scraps, Travel Desk, Educational Division tips from guest and other miscellaneous services.

K. Other Income: Other Income comprises of gain or loss in Foreign exchange earnings, Interest Received, Dividend Received and Other Miscellaneous Income.

L. Events after the date of Balance Sheet: Wherever material, events occurring after the date of Balance Sheet are considered up to the date of adoption of the accounts.

M. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources to settle the obligation. Provision is not discounted to its present value and is determined based on the best estimate required to settle an obligation at the year end. These are reviewed every year end adjusted to reflect the best current estimate. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Statements.

N. Foreign Currencies:

Transactions in Foreign Currencies are generally recorded by applying to the Foreign Currency amount, the exchange rate existing at the time of transaction. At year / period end monetary items denominated in foreign currency remaining unsettled are converted into Indian Rupee equivalents at the year / period end exchange rates. Gains or Losses on settlement, in a subsequent period of the transactions entered into in an earlier period, are credited or charged to the statement of Profit & Loss.

O. Claims:

Claims against the company not acknowledged as debts are disclosed after a careful evaluation of the facts and legal aspects of the matter involved.

P. Prior Period & Extra Ordinary Items:

Prior Period adjustment, extra ordinary items and changes in the accounting policies having material impact on the financial affairs of the Company are disclosed.

Q. Assets Impairment:

An assets is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which the assets are identified as impaired. The impairment loss recognized in the prior periods is reversed if there has been a change in the estimate of recoverable amount.

R. The Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to the revenue.


Mar 31, 2012

A. Basis of preparation of financial statement:

a. The financial statements have been prepared under the historical cost convention, in accordance with the generally accepted accounting principles and provisions of The Companies Act, 1956 as adopted consistently by the company and ongoing concern basis.

b. Accounting policies not specifically referred to otherwise are consistent with generally accepted accounting principles followed by the company.

B. Basis of Accounting:

a. The company follows the mercantile system of accounting.

b. All income and expenditure items having material bearing on financial statement are recognized on accrual basis, except Dividend and insurance claim, if any.

C. Fixed Assets:

a. All fixed assets are valued at cost of acquisition/ construction. The cost of fixed assets comprises, of its purchase price and attributable costs including finance cost, of bringing the assets to its working condition for its intended use.

b. The expenses incurred during construction period, incidental to the Expansion / New Project are allocated to respective Fixed Assets in the year of commencement of the commercial operation.

c. Premium paid on Lease hold land is amortized over a period of Lease.

D. Depreciation:

a. Depreciation has been provided on "Straight Line Method" in accordance with the provisions of the Section 205(2)

(b) of The Companies Act, 1956.

b. Depreciation on fixed assets acquired and put to use up to 15.12.93 has been provided at the rates prevailing at the time of their acquisition and on the assets acquired after that date at the rates as per Schedule XIV of the Companies Act, 1956

c. Depreciation on fixed assets added during the financial year has been computed on pro-rata basis with reference to period of use of such assets.

d. Assets whose actual cost does not exceed Rs.5,000/- have been classified under respective groupings as per their nature.

E. Investments:

Investments in shares and securities are long term investments and are stated at cost. Gains / Losses on disposal of such investments are recognized as income / expenditure. When there is a decline in the value of any investment which is not considered to be temporary, then same is provided for by reducing the value of investment and charging the same to the Statement of Profit & Loss.

F. Inventories:

a. Company follows the practice of charging to revenue, the cost of operating inventories of crockery, glassware, cutlery & curtains in the year of purchases, except under expansion project.

b. Inventories of food materials and beverages, stores and supplies, coal and fuel, wine are valued at lower of cost or net realizable value. Cost is arrived at on First In First Out basis.

G. Cash & Cash Equivalent :

Cash and Cash equivalent for purchase of cash flow statement comprise cash at bank and in hand and short term investment with an original maturity of 3 months or less.

H. Provision for Taxation

The amount of Income Tax is provided in accordance with the provisions of Income Tax Act, 1961.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences being differences between taxable income and accounting income, that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets are not recognized on unabsorbed depreciation and carry forward of losses unless there is a virtual certainty that sufficient taxable profits will be available against which such deferred tax assets can be realized.

I. Benefits to Workmen:

The Company's contributions to the Provident Fund are charged to the Profit and Loss Account.

The Gratuity payable at the time of retirement are charged to the Profit and Loss Account on basis of independent external actuarial valuation determined and basis of Projected Unit Credit method carried out annually. Actuarial gains and losses are immediately recognized in the Profit and Loss Account.

The employees of the Company are entitled to leave/leave encashment as per the Leave Policy of the Company.

The provision for Leave Encashment is made on the basis of independent external actuarial valuation carried out at the end of the year/ period to which it pertains.

J. Revenue from Operation:

Revenue from Operation comprise of sale of Guest Rooms, Food and Beverages, Wine Sales Income from Business Centre but exclusive of Luxury Tax, VAT, Service Tax and other Taxes.

Other Operating Income includes Income from Hall Hire, Miscellaneous Banquet Services, Telecommunication, Laundry Services, Sale of Scraps, Travel Desk, Educational Division and other miscellaneous services.

K. Other Income:

Other Income comprises of gain or loss in Foreign exchange earnings, Interest Received, Dividend Received and Other Miscellaneous Income.

L. Events after the date of Balance Sheet:

Wherever material, events occurring after the date of Balance Sheet are considered up to the date of adoption of the accounts.

M. Miscellaneous Expenditures:

Preliminary expenses, public issue expenses and right issue expenses are amortized over a period of five years.

N. Provisions, Contingent Liabilities and Contingent Assets:

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of past event and it is probable that there will be an outflow of resources to settle the obligation. Provision is not discounted to its present value and is determined based on the best estimate required to settle an obligation at the year end. These are reviewed every year end adjusted to reflect the best current estimate. Contingent Liabilities are not recognized but are disclosed in the notes. Contingent Assets are neither recognized nor disclosed in the Financial Statements.

O. Foreign Currencies:

Transactions in Foreign Currencies are generally recorded by applying to the Foreign Currency amount, the exchange rate existing at the time of transaction.

At year / period end monetary items denominated in foreign currency remaining unsettled are converted in to Indian Rupee equivalents at the year / period end exchange rates.

Gains or Losses on settlement, in a subsequent period of the transactions entered into in an earlier period, are credited or charged to the statement of Profit & Loss.

P. Claims:

Claims against the company not acknowledged as debts are disclosed after a careful evolution of the facts and legal aspects of the matter involved.

Q. Prior Period & Extra Ordinary Items:

Prior Period adjustment, extra ordinary items and changes in the accounting policies having material impact on the financial affairs of the Company are disclosed.

R. Assets Impairment:

An assets is treated as impaired when the carrying cost of the assets exceeds its recoverable value. An impairment loss is charged to the profit and loss account in the year in which the assets are identified as impaired. The impairment loss recognized in the prior periods is reversed if there has been a change in the estimate of recoverable amount.

S. The Borrowing Cost:

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. A qualifying asset is one that necessarily takes substantial periods of time to get ready for intended use. All other borrowing costs are charged to the revenue.

 
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